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According to an article in The Independent, researchers at Oxford University have achieved a significant breakthrough in quantum computing. They have developed a scalable quantum supercomputer capable of quantum teleportation. The advancement addresses the scalability challenge that has hindered quantum computing’s practical implementation.
This breakthrough involves quantum teleportation of logical gates — the essential components of algorithms — across a network link. While quantum teleportation isn’t new, this is the first successful demonstration of teleporting fundamental computing elements across a network.
The article stated that Dougal Main led the Oxford team, demonstrating how quantum teleportation can create interactions between distant systems. Main and other researchers manipulated these interactions and performed logical quantum gates between qubits located in separate quantum computers. The experiment effectively connected distinct quantum processors into a unified system.
The research, published in Nature under the title “Distributed quantum computing across an optical network link,” demonstrates that network-distributed quantum information processing is achievable with existing technology.
Given the optimism surrounding this disruptive space, here are two quantum computing stocks you can consider buying right now.
Is Rigetti Computing a Good Buy Right Now?
With a market cap of $2.25 billion, Rigetti Computing (RGTI) builds quantum computers and the superconducting quantum processors that power them. RGTI integrates these machines into various public, private, or hybrid clouds through the Quantum Cloud Services platform.
Rigetti Computing has announced ambitious plans for 2025, including the mid-year release of a 36-qubit system based on 49-qubit chips, targeting a 99.5% median 2-qubit gate fidelity. By the end of 2025, it aims to launch a 100-plus-qubit system with similar fidelity levels, followed by the development of a 336-qubit system.
Rigetti’s progress includes developing the 84-qubit Ankaa 3 system, which targets 99% plus median 2-qubit gate fidelity by the end of 2024. Its superconducting qubits achieve gate speeds of 60-80 nanoseconds, significantly faster than competing technologies.
In the third quarter of 2024, Rigetti reported revenues of $2.4 million, down from $3.1 million in the year-ago period. Its gross margins decreased to 51% from 73% over the last 12 months. The company’s net loss improved to $14.8 million ($0.08 per share) compared to $22.2 million ($0.17 per share) last year.
As of Sept. 30, 2024, Rigetti had $92.6 million in cash and investments and an additional $12 million raised through stock sales. Thus, It expects its funds to sustain operations for the next 12 months.
Out of the five analysts covering RGTI stock, four recommend “Strong Buy,” and one recommends “Moderate Buy.” The average target price is $9.10, down 20% from current prices.
Is Alphabet Stock Undervalued?
Alphabet (GOOG) (GOOGL), Google’s parent company, is positioned to lead the quantum computing space, given that Willow, its new quantum processor, achieved two significant milestones recently.
First, Willow has made progress in reducing quantum bit (qubit) errors, a challenge that has hindered quantum computing for several decades. By scaling up the number of qubits, the processor reduced errors exponentially. Second, Willow completed a benchmark computation in under five minutes, which would have taken traditional supercomputers billions of years to process.
According to Jensen Huang, CEO of Nvidia (NVDA), practical applications of quantum computing might be decades away. However, Alphabet’s strong financial position and vast resources should allow it to gain a first-mover advantage in this disruptive segment.
According to a research report from BCG, the quantum computing market is projected to reach $850 billion by 2040. This rapidly expanding addressable market will allow Alphabet to diversify its revenue streams further over the next decade.
With $23.5 billion in cash, Alphabet generated $72.8 billion in free cash flow in 2024, which suggests that the Big Tech giant can easily sustain investments in quantum research without immediate pressure for commercial returns.
Out of the 50 analysts covering GOOGL stock, 38 recommend “Strong Buy,” three recommend “Moderate Buy,” and nine recommend “Hold.” The average target price for GOOGL stock is $218.75, indicating upside potential of 20% from current levels.
